After being released from prison, Cut Famon returned to his home town of Homeville to live with his brother "Muscle" and mother (called "Maw"). Cut's return coincided with Dick Tracy being temporarily named Chief of Police in Homeville, in an effort by Mayor Waite Wright to reduce crime and corruption in the city.
Cut put his trusted associate Bail Gordon in charge of his protection racket, but when Bail failed to meet Cut's expectations, he was beaten and taken off the job. Cut later tricked Dick Tracy into signing a promissory note that he would later put his name on as the party leasing the money, with which he could then blackmail Tracy.
Bail Gordon revealed himself to be FBI Agent Jim Trailer, and he arrested Cut and Muscle. Before Trailer could get them to headquarters, Cut triggered a secret alarm, and Maw came to rescue her sons. She arrived at the same time as Tracy, resulting in a shootout that left Maw and Muscle dead.
Cut escaped and started to form a new gang. Tracy infiltrated the gang in disguise and informed Trailer and Pat Patton of the gang's activities. Shortly thereafter, Tracy was inadvertently injured and Cut and his gang discovered Tracy's disguise while he was unconscious. They assaulted Tracy and planned to leave him for dead. As they were transporting Tracy to where they were planning to leave him. they were stopped by Trailer, Patton and the police, resulting in a shoot-out.
Cut and his associate Kent survived and were handcuffed. Cut tricked Trailer into triggering the machine guns hidden behind his car's grille, which shot several of the officers in the legs and lower torso. Cut and Kent tried to escape, but were both shot and killed.
- Before his encounter with Dick Tracy, Cut Famon had served a seven-year prison term for income tax evasion. Much like Al Capone (upon whom Cut's appearance was partially-based), Famon was suspected of many other crimes, but tax evasion was the only charge that authorities could effectively prove.
- The Cut Famon storyline was reportedly a favorite of Sgt. Jim Doherty, the strip's former technical advisor.
- The history of the Apparatus that was devised by Sgt. Doherty indicates that Cut Famon was an early high-ranking figure. Cut's seven-year prison sentence dates back to before the strip's beginning, making his role in the organization difficult to pinpoint. Cut could have been a predecessor of Big Boy, a contemporary, or a successor.